Published: Fri, March 10, 2017
Money | By Oscar Reynolds

Icahn, analysts welcome resignation of AIG chief

Icahn, analysts welcome resignation of AIG chief

Yet, in its latest quarter, the company's losses widened to $3.04 billion, or $2.96 per share, from $1.84 billion, or $1.50 per share.

Hancock said in a statement on Thursday that he could not continue in his role without "wholehearted shareholder support".

AIG was brought to its knees during the financial crisis and rescued by a $182 billion bailout from the government.

"This was the board reacting to the poor news from the fourth-quarter results", Paul Newsome, an analyst at Sandler O'Neill & Partners, said by phone.

Amid massive losses at American International Group Inc.

"I believe this is the right decision to make for the company and all its stakeholders", said Hancock, who plans to remain chief executive until a successor is named.

Carl Icahn, who called for a breakup of the company two years ago to reduce regulatory burdens, welcomed the move in a tweet, saying "we fully support the actions taken today by the board of $AIG".

Hancock's plan past year came as billionaire activist investor Carl Icahn called for AIG to be split.

Hancock is AIG's fifth chief executive since Maurice "Hank" Greenberg was ousted in 2005.

AIG chairman of the board, Douglas M. Steenland, said Hancock "tackled the company's most complex issues, including the repayment of AIG's obligations to the U.S. Treasury in full and with a profit, and is leaving AIG as a strong, focused and profitable insurance company".

In January, AIG announced a deal to pay $9.8 billion to National Indemnity Co, a unit of Berkshire Hathaway Inc to cover most of AIG's US commercial long-tail exposures, or liabilities for claims that take a long time to be settled, for accidents that occurred in 2015 and prior. The company will conduct a comprehensive search for a successor to Hancock.

The stock was trading up 1.58 percent at $64.44 as of 14:53 GMT as markets digested the news, which was released before trading began this morning.

Hancock had said the so-called SIFI designation targeted by Icahn was not a big concern.

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